HB 817 -- Low-Profit Limited Liability Companies

Sponsor:  Storch

This bill allows for the organization of a low-profit limited
liability company or L3C.  To organize as an L3C, a company must:

(1)  Significantly further the accomplishments of one or more
charitable or educational purposes within the meaning of Section
170(c)(2)(B) of the Internal Revenue Code of 1986;

(2)  Have been formed because of the company's relationship to
the accomplishment of the charitable or educational purposes;

(3)  Have no significant purpose of producing income or the
appreciation of property; and

(4)  Have no purpose of accomplishing one or more political or
legislative purposes within the meaning of the federal code.

"Low-profit limited liability company," "L3C," or "l3c" must
appear in the name of the company; and if at any time the company
ceases to satisfy the requirements of a low-profit limited
liability company, the company will automatically convert to a
limited liability and a change in the name of the company will be
made to reflect this change in status.

Missouri House of Representatives
95th General Assembly, 1st Regular Session
Last Updated November 17, 2009 at 9:25 am